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The need for strong and active supervision of its financial institutions. The major elements of these events and changes and how they can be expected to influence the work that will be done. Two lessons learned from past events. Some international concerns about federal-provincial fragmentation of the regulatory process in Canada. Three basic messages. The mandate and mission of the speaker's office. The protection and well-being of the public. Concern with the ability of each federally regulated institution to meet all its obligations as they fall due. The general conditions in the economic financial and market environment that if not managed well can lead to trouble. The high and increase system risk. "The first line of defence in this environment lies in self-governance and self-regulation … the key to a safe system." What is meant by self-regulation. The ability of the industry to assure safety for depositors and policyholders as well as investors only if it is profitable. Poor management as the key factor in virtually all failures and near failures. The opening up of new markets and new competition under deregulation and what that will mean. The importance of management and the need to know how it is handling adversity. A more pro-active approach by the speaker's office. The development of direct relationships with boards of directors, usually through audit committees. Other pro-active initiatives. Collaborating with the profession in the development of appropriate accounting rules. Relationships with external auditors. Some future dimensions. Setting up advisory committees of auditors of banks, trust companies, life insurance and casualty insurance companies. An examination policy. Capital adequacy. The need to develop regulatory measures of capital that are realistic and consistent. Legislation which sets up the office of the Superintendent. Power to set asset values. New territory for a regulator in Canada. The banking system. Management of Canada's financial institution. The place of major Canadian banks< trust and insurance companies in our economy. The importance of those institutions constituting the core of a healthy financial system.